What If Costco Was In Our Backyard?

Costco is one of our favorite places to stock up.  We have a list of items that we believe Costco gets us the best price, and we stock up regularly on those items.  We fully take advantage of their regular coupons on items that we could buy anyways or items that can replace other items that we might buy anyways.

We make a list for our Costco trips, but we are admittedly guilty about adding things to it during the course of a trip, though we really keep it to a minimum.

We save what we believe is a good amount at Costco, and we also try to limit our spending, with one thing helping us in that regard: Geography.

We don’t have a Costco within 11 miles of our house…yet we have four of them within 14 miles.  That means that we are basically in the dead center of an area with no Costco stores.  This actually works to our advantage because it limits our trips.

However, there is a rumor floating around that a recently closed Kmart spot about a mile from our house is drawing interest from Costco as a new location.  Looking at the geography that I mentioned, that would make sense as a potential new location in our area, though I’m sure they would have to balance this against potential reductions in sales at other stores.

Would Sales Go Down At Other Stores?

I’m sure that Costco would not open a new store unless overall sales were expected to increase.  Otherwise, why would they take on the overhead of another location?  But if they were able to see slightly reduced sales at the surrounding locations from the potential ‘new’ store that were more than offset by the new sales, it would likely be worth their while.  They would  likely accomplish this in several ways:

  • Increased visits from current customers – We would likely fit in here.  My wife and I were talking about this and we might end up spending more on smaller trips, with the hope that we would offset purchases elsewhere.  These would largely fall into items that we can’t buy regularly with our current once-every-four-to-six-weeks schedule, like milk, bananas, eggs and other items that we might prefer to buy at Costco, but will often buy elsewhere because going 11 miles out of our way for a ‘fill-in’ trip just won’t happen, whereas going a mile away would not be a problem.  We’d just have to be careful that it was truly an offset, but regardless, Costco would likely benefit.
  • New retail customers – There are likely people living near us that simply choose not to go to Costco that might if one were closer, so you would likely attract a new customer base.
  • New business customers – Along the same lines, many businesses like to stock up on supplies and ingredients from Costco.  We have a large mix of businesses in the area, from retail to manufacturing, and many offices, and I would expect that if a Costco were to open, it would be attractive for businesses, which I know is a very lucrative area for Costco.

For now, a local Costco is just a rumor, but if it came to fruition, I’m not going to lie, I would be pretty happy about it, though I know we’d have to make sure that more frequent usage would in fact lead to savings for us.

Readers, do you have a Costco (or other warehouse club)  ‘just around the corner’, and if so, how does it affect your shopping habits?

 

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3 thoughts on “What If Costco Was In Our Backyard?

  1. I have a BJ’s club less than a 1/2 mile from our house, but Costco is our Warehouse of choice. We carry both memberships because of the convenience of the BJ’s location. It hasn’t changed our shopping habits. I will run to BJ’s just to pick up milk because it saves me money.

  2. When our Costco opened, people wondered if it would affect the Sam’s club just down the road….they’re both still open. Although I have no idea what the actual sales numbers are. So our Costco has been open for about 2 years now, and right in front of the Costco parking lot is now being constructed an Aldi. I think that they are probably two different customer bases…but I thought that was interesting placement for an Aldi.

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